Drop-In: The EU’s looming carbon border tax – what it means for growth, trade and competitiveness

The EU’s Carbon Border Adjustment Mechanism (CBAM) is coming. Set to begin in 2026, it will require EU importers to pay for the carbon emitted in the production of goods they bring into the bloc – effectively extending the ‘polluter pays’ principle to imports. But what will it mean for trading economies, and for European industrial competitiveness more broadly? 

Economists from our Climate & Commodities team hosted an online briefing on CBAM and its implications for the EU economy, exporters into the EU, and climate policy in general.